Why Insurance Companies Have Fled the CA Market & How We Get Them Back | Patrick Wolff

Mar 31, 2026

Patrick Wolff, chess grandmaster, entrepreneur, and candidate for California Insurance Commissioner, tackles the collapse of the homeowners insurance market. He discusses how insurers pulled back after big fires, the role of regulation in blocking risk-based pricing, the need for wildfire mitigation and home hardening, and ideas to restore competition and accountability in California.

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INSIGHT

How 2017–2018 Fires Broke The Market

California's modern wildfire insurance collapse began after the catastrophic 2017 and 2018 fires wiped out decades of underwriting profits.
Insurers then recognized dramatically higher risk but the Department of Insurance blocked risk-reflective repricing, prompting pullbacks and market dysfunction.

ANECDOTE

State Farm's Expansion Then Non Renewals

State Farm aggressively expanded into California then later non-renewed policies when exposed after underwriting at uneconomic prices.
The company legally insulated its California subsidiary so the parent wouldn't be obliged to backstop huge losses, leaving customers exposed.

INSIGHT

Regulator Tried To Pick Prices Not Enforce Rules

The Department of Insurance acted like a price setter rather than a market regulator, trying to pick “the right price” instead of enforcing pro-consumer behavior.
That cultural stance preserved short-term low prices but hollowed out competition and accountability, worsening long-term availability.

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Guest:

Patrick Wolff, Candidate for CA State Insurance Commissioner

Guest Bio:

Patrick Wolff is a chess grandmaster, entrepreneur, and Democratic candidate for California Insurance Commissioner. He is focused on restoring functionality to California’s broken homeowners insurance market, increasing wildfire mitigation efforts, and reforming how the Department of Insurance regulates insurers operating in the state.

Show Summary

California’s wildfire insurance crisis didn’t begin with the Palisades and Altadena fires. It began years earlier, when rising wildfire risk collided with rigid regulation and a shrinking insurance market.

In this episode of State of Gold, Jon Slavet sits down with chess grandmaster and CA State Insurance Commissioner candidate Patrick Wolff to unpack what went wrong — and what needs to change. Wolff explains how, after the catastrophic 2017 and 2018 fires, insurers sought to adjust pricing to reflect increased risk but were blocked from doing so. As risk rose and pricing flexibility remained constrained, insurers pulled back. State Farm expanded aggressively, only to later non-renew policies and seek emergency rate hikes, leaving homeowners trapped in a fragile and under-competitive market.

The conversation goes deeper than rates and policies. Wolff discusses the need for more aggressive forest management and controlled burns, how well-functioning insurance markets provide critical risk signals, and why regulators should focus on consumer protection and competition rather than dictating prices.

It’s a candid discussion about accountability and leadership, and whether California can rebuild both its insurance market and public trust.

Chapters

00:01 – A Chess Grandmaster Enters the Insurance Debate
00:27 – Was the Fire Crisis Man-Made?
02:59 – Controlled Burns & Fire Risk Management
05:59 – How California’s Insurance Market Broke
09:55 – Why Regulators Blocked Risk-Based Pricing
12:17 – What Fair & Competitive Pricing Should Look Like
15:15 – Fire Hardening Homes: What Works & What It Costs
17:18 – Why Home Hardening Is a Public Good
19:06 – Day One as Insurance Commissioner
19:47 – Leaders He Respects
20:51 – What Gives Him Hope About California

Connect with Patrick Wolff

Website: https://patrickwolff.com/events
Instagram: https://www.instagram.com/wolffonyourside/
LinkedIn: https://www.linkedin.com/in/patrick-wolff-222192/

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